Deal Signed for Vietnam’s Mong Duong Power Plant

The US-invested developer of the $2.1-billion Mong Duong 2 thermal power plant in the northern province of Quang Ninh has signed an adjusted build-operate-transfer contract with Vietnam’s Ministry of Industry and Trade.

Vietnamese deputy minister of industry and trade Hoang Quoc Vuong told investors, "The re-signing of the contract which was first signed on April 22, 2010, is due to a change of investors. The contract signed on July 21 marked success in improving the investment environment as well as attracting foreign investors to large power projects in Vietnam," Viet Nam News agency reported.

Under the earlier contract, the site’s developer was the Mong Duong AES-TKV, a joint venture between the U.S. Electric Supply Inc. company and the Vietnamese state-owned mining giant, Vietnam National Coal and Mineral Industries Group. Under the new contract’s terms, The Mong Duong 2 thermal power plant sponsors are now affiliates of AES Corp. (51 percent), Posco Power Corporation of the Republic of Korea (30 percent) and China’s China Investment Corp. (19 percent).

U.S. Embassy economic counselor Jessica Webster said, "The Mong Duong 2 power project represents an important addition to Vietnam's energy production. With this, Vietnam has taken an important step toward meeting its energy challenges."

By. Joao Peixe, Deputy Editor OilPrice.com